The last thing any business owner wants to hear is that their bank account has been levied by the IRS. A levy is a legal seizure of your property to satisfy a debt you’ve refused to pay. The IRS will only levy your property if they’ve tried to collect taxes owed, but were unsuccessful in their efforts. The process typically starts with them sending you a “Notice and Demand for Payment”, which you neglected or refused to pay. They then send you a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing” 30 days before levying your property.
So the IRS levied your business bank account. Now what? What should you do?
Tax experts recommend any individual who has had their property levied to hire tax professionals to deal with the IRS on your behalf.
If you hire Tax Defense Partners, we will step into your shoes during the complicated appeal process. Tax Defense Partners will also negotiate with the IRS on your behalf and attempt to resolve tax debt relief and tax debt settlement at the lowest amount allowed by law, in order to continue operating your business. Tax Defense Partners can also negotiate a solid payment plan with the IRS to take care of taxes owed, along with penalties and interest accumulated.
It’s very crucial for taxpayers to make their payments on time once the plan is set up, or there may be severe consequences. One of which includes potential criminal prosecution. So, if you plan on making a late payment, don’t forget to contact the IRS or your tax attorney and inform them of the reason as to why. If you fail to do so, don’t be surprised when severe penalties and charges are pressed against you.
What if the levy was an error?
If you believe the levy was an error, your tax professionals can request a conference with the IRS manager of the employee who levied your property. The window to file a 9423 “Collection Appeal Request” is very tiny, with only a few days available for you to submit. Your tax advisor can also help you with this process if needed.
Unpaid taxes can be a symptom of a business issue with cash flows. You can increase cash flows by increasing profits and/or decreasing costs. Either way, getting your business bank account levied can be a huge inconvenience for your business. It’s very important to make sure you have enough funds available to pay any outstanding taxes owed to the IRS.